Corn Advances for Fourth Day as Wet Weather Delays Spring Planting in U.S.

Corn rose for a fourth day in Chicago and soybeans climbed after a report showed U.S. sowing lagged behind the pace of recent years as many fields remained too soggy for heavy farm machinery.

About 63 percent of the U.S. corn crop, the world’s biggest, was planted as of May 15, according to the U.S. Department of Agriculture. That compares with 40 percent a week earlier and 87 percent a year earlier. The average was 75 percent from 2006 to 2010.

“Given the tight supplies of old crop, the planting delay of U.S. corn is a concern,” said Han Sung Min, a broker at Korea Exchange Bank (004940) Futures Co. in Seoul. Wheat was also supported by the spring crop delay and deteriorating winter-crop conditions, while the delay in corn planting may encourage U.S. farmers to increase soybean seeding, Han said.

Corn for July delivery gained 6.5 cents, or 0.9 percent, to $7.04 a bushel by 1:15 p.m. London time on the Chicago Board of Trade. Prices are up 3.9 percent since trading ended on May 11. The grain almost doubled in the past year.

“Dry weather conditions in the western Midwest prompted farmers to rush to profit from the finally available window to advance plantings as much as possible as a delayed maturation increases the risk of frosts occurring later this season,” said Jonathan Bouchet, a Zurich-based analyst at OTCex Group. “However, wet conditions are forecasted to persist for some time in the eastern Midwest and Delta regions.”

Wheat Sowing

Soybean planting was 22 percent complete, compared with 7 percent a week earlier, 37 percent a year earlier and the five- year average of 31 percent, the USDA said. About 36 percent of the spring-wheat crop was seeded, against 22 percent a week earlier and an average 76 percent for the past five years, the USDA said.

Soybeans for July delivery rose 4.25 cents, or 0.3 percent, to $13.3075 a bushel, the first increase in three days. The oilseed gained 41 percent in the past year.

About 44 percent of the U.S. winter wheat crop was in very poor or poor condition, compared with 42 percent a week earlier and 8 percent a year earlier, the USDA said.

Wheat for July delivery rose 1 cent, or 0.1 percent, to $7.375 a bushel. The grain jumped 57 percent in the past year, partly as the worst Russian drought in 50 years cut world stockpiles. Milling wheat for November delivery traded on NYSE Liffe in Paris slipped 25 cents, or 0.1 percent, to 228.50 euros ($323.67) a metric ton.

(Source: http://www.bloomberg.com/news/2011-05-17/corn-wheat-extend-gains-as-wet-weather-delays-spring-planting-in-the-u-s-.html)